K Hovnanian Purchases 490 Lots in Northwest Phoenix From Courtland for $36.875m

VIZZDA—August 2nd, 2012 — K Hovnanian Homes acquired a total of 490 lots in 3 subdivisions, (230 finished lots & 260 platted lots) for a total of $36,875,000. The subdivisions include:

  • Rock Springs I, 260 Final Platted lots 60’x120’.
    Community totals 260 lots on 146.48 acres
    N/NEC Jomax Rd & 83rd Ave, Peoria

  • Rock Springs II (phase 1), 94 Finished lots 50’x120’.
    Community totals 500 lots (75 – 44’x110’ & 205 – 50’x115’) on 87.77
    acres per plat.
    NWC Jomax Rd & 75th Ave, Peoria

  • Rio Sierra, 136 Finished lots (69 – 44’x110’ & 67 – 50’x115’).
    Community totals 280 lots on 79.6 acres per plat.
    S/SEC El Mirage Rd & Williams Dr, Peoria/Sun City

Courtland Homes was the seller; they had previously purchased Rio Sierra as part of a larger sale on October 21st, 2004 for $37,262,871. That sale included all of Rio Sierra (280 lots), 210 lots in Rancho Silverado and 170 lots in Crossriver. A portion (~140 acres) of Rock Springs was previously acquired by Courtland Homes on February 28th, 2002 for $2,244,000.

K Hovnanian recently announced 7/13/12 a $125M land banking arrangement with GSO Capital Partners (credit arm of Blackstone). No debt was recorded with the sale. Nate Nathan brokered the transaction, representing both Buyer & Seller.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, ‘like’ us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:

Hadden Schifman
Managing Director

Hadden@VIZZDA.com

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Market Snapshot: Fletcher Heights Marketplace

VIZZDA—August 1st, 2012 – The sale and notice of two properties within the same neighborhood shopping center in Peoria highlight the uneven pace of recovery in the retail sector in Northwest Phoenix, as well as the roll of securitization (CMBS) in both the appreciation and rapid decline of values. The subject retail center, Fletcher Heights Marketplace, was built in 2002 at the Southeast corner of 83rd Avenue and Lake Pleasant Parkway in Peoria and features a 57,860 SF anchor space owned and occupied by Safeway. and access to several recently developed master-planned communities including the eponymous Fletcher Heights. Three of the ten originally platted lots changed hands on Thursday and Friday of last week- reflecting more than half of the available non-anchor space.

The first of these properties, Lot Eight, is a 9,291 SF pad built 2005 on 1.06 net acres zoned PAD. It was acquired May 10th, 2004 by a syndicate formed by David Stapleton, Barry Light and Michael Feldman for $550k with $375k down and $175k new debt with Marine Bank, released May 23rd, 2005. Prior to that release, the syndicate then further encumbered the property with a $1.75m deed of trust with Los Padres Bank which as assigned to Valley Oaks Bank before finally being released January 2nd, 2007. This debt was replaced by a Morgan Stanley deed of trust that was issued November 2nd, 2006, securitized sometime thereafter and assigned as a collateralized security to Wells Fargo Bank on March 21st, 2007. Friday’s sale price of $960k reflects an annual rate of return greater than 9% as well as terminating all obligations of the selling syndicate.

The second active property within Fletcher Heights Marketplace last week included Lots Six and Seven. The non-contiguous inline spaces total 27,016 SF and were constructed with the anchor space in 2002. They sit on a combined 3.95. Fred C Smith originally acquired the property for $7.1m with $5.68m new debt with Lehman Brothers Bank on June 24th, 2003. Lehman securitized the note and assigned it to Lasalle Bank (CMBS) on February 9th, 2004. On October 5th, 2005, Smith sold the property to David Christenholz et al for $7.7m; with $2,161,247 down and assumption of the LaSalle $5.68m CMBS note. On July 20th, 2006, Christenholz sold the property to Thomas H Dye, et al. for $9.5m with $4,075,010 down and assumption of the CMBS debt, now held by Bank of America as successor-by-merger to Lasalle Bank. Finally, Bank of America assigned the $5.68m original note to US Bank on July 12th, 2012. US Bank noticed the property for trustee sale July 26th, 2012, naming Fred C. Smith as trustor despite the property selling two additional times and assumption of debt.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, ‘like’ us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:
Paul Dionne

Research Analyst

pdionne@vizzda.com

Hadden Schifman
Managing Director

Hadden@VIZZDA.com

Tratt Properties purchases ±71 acre land assemblage in Goodyear

VIZZDA—July 26th, 2012 — Tratt Properties based in Phoenix acquired a land assemblage in Goodyear, previously planned as the Sarival Crossing Business Park for $2,581,475 or $35,948 per acre. The site totals 71.81 acres per Phoenix zoning docs and is zoned PAD. Sarival Crossing was recommended for final plat approval by Goodyear planners June 23rd, 2008. The final plat called for subdividing the land into 18 parcels–an 8.68 acre Commercial Business Park, 30.59 acres of land zoned I-1 and 20.94 acres of land zoned I-2.

Larry Van Tuyl of Van Tuyl Auto Group was the seller. Mr. Van Tuyl previously acquired the property June 29th, 2009 in a non-money sale after purchasing a $14.151m note dated May 24th, 2006 from M&I Bank on April 1st, 2009. The last purchase of the property was May 24th, 2006 for $ $7,808,421. Tratt Properties has a distinguished history of developing and owning distribution centers in the Greater Phoenix area. No debt was recorded with the sale. Tratt acquired the property under the legal entity: Elwood Logistics Center LLC.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, ‘like’ us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com

Baron Properties Buys The San Ventura Apartments

VIZZDA—July 20th, 2012 – Danny Gabriel of Colrich was signatory to the sale of the San Ventura Apartments, a 272-unit apartment complex at 3600 W Ray Rd, Chandler which was purchased by J Jeffrey Riggs of Baron Properties, for $29,650,000 or $109k per door on July 19th, 2012. Baron Properties put $9,260,000 down, secured a $3,278,500 Freddie Mac Multifamily Loan originating with Holliday Fenoglio & Fowler (HFF), and assumed an existing $17.18M loan (5.08% A.P.R. fixed, maturing April 1st, 2018) originated by HFF as an FHLMC loan March 3rd 2011 and assigned to Citibank September 16th, 2011.   

The 2-story apartment complex consists of 34 buildings built in 1995 on 14.67 acres. The apartments’ exterior was renovated in 2006 and Colrich has been renovating the apartments’ interiors as they have turned over. The individually-metered complex features a unit mix of 104 1Br/1Ba (921 ft2), 144 2Br/2Ba (1,173 ft2) and 24 3Br/2Ba (1,442 ft2). The community is 94% occupied.

The apartments were acquired by Colrich on May 10th, 2007 for $40.7M with $10.2M down and $30.5M debt with Capmark Finance; per affidavit of value, $2.035M of the sale price was for the furnishings.  The Capmark debt was modified September 18th, 2008 by splitting it into two notes: note A $19.32M & note B $11.18M. Colrich then took on $19.45M debt March 23rd, 2009 with California Bank & Trust in two notes: note A $17.225M & note B $2.225M. Colrich used the proceeds to  pay off the Capmark Note A debt on March 23rd, 2009 and the remaining debt on April 23rd, 2009. 

 

On March 1st, 2010 Colrich transferred the ownership of the San Ventura apartments to a second Colrich-owned entity recording a sale price of $20.475M with $3.39M down and the assumption of the California Bank & Trust notes. With this assumption, however, Zions First National Bank now holds Note B ($2.225M) and must be paid off first. On March 3rd, 2011 . Holliday Fenoglio Fowler originated a $17.18M FHLMC loan (fixed 5.07% rate, maturing April 1st, 2018) which was securitized (CMBS) and to be serviced by HFF.  This debt was assigned to Citibank September 16th, 2011 and assumed by Baron Properties in the current sale.

 

By:

Ed Moore

Research Analyst

emoore@vizzda.com

Vizzda to Demonstrate CRE Platform at International Esri User Conference

VIZZDA—July 19, 2012 – Esri, a private geographic information systems (GIS) company with over 350k clients and 1600 partners world-wide, has invited VIZZDA to present our innovative CRE research platform at its annual International User Conference in San Diego. The four-day conference begins Monday, July 23rd and concludes Thursday, July 26th. On Wednesday, July 25th VIZZDA will be showcase the latest version of its map-centric system, which combines an internally generated property database with the cutting edge in GIS technology, during the User Software Application Fair. This event typically draws an excess of 20k attendees and is the largest GIS industry conference in the nation.

In addition to presenting to the conference at large, VIZZDA will present its platform to a panel discussion entitled “Game Changers in Retail, Real Estate and Insurance” at a pre-conference seminar on Sunday, July 22nd. Hadden Schifman will represent VIZZDA on the panel and will be joined by Lester Pierre at Wall Street Networks, David Huntoon at Intalytics and Keith King of GM Commercial Markets. The topics discussed include predictive analytics, CAT modeling, and systems integration for retail. This is a Partner-to-Partner panel and as such is closed to the public

Follow our coverage of the Esri International User Conference at vizzdanews.blogspot.com or with the Twitter hashtag #EsriUC.

Orsett Sells Del Mar Apartments to California Investor for $12.2m

VIZZDA—July 18th, 2012 — Curt Feuer of Orsett has completed the sale of the Del Mar Apartments—144 units in ten 2-story buildings totaling 152,307 ft2 west of 83rd Avenue and Mcdowell Road—fpr $12.2m or $84,722 per door.  Dr. Edward B Frankel, a retired physician from Santa Ana, California, paid cash for the property.

Orsett previously acquired the property prior to an August 24th, 2007 related-party transfer and $12.95m construction deed of trust with Compass Bank. The complex was completed in 2008 and sits on 7.93 net or 9.18 gross acres. The units are individually-metered for electricity and master-metered for water. The property is professionally managed by Management Support Services and is currently 97% occupied.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, ‘like’ us on Facebook, sign in or  join our 30-day free trial and beta test!

 

By:

Paul Dionne

Research Analyst

pdionne@vizzda.com

Hovnanian Enterprises Sells Lots at Stratland Ranch to GSO Capital Partners For $7.95m

VIZZDA—July 13th, 2012 – Hovnanian Enterprises of Red Bank, NJ has completed the sale of 56 finished lots to GSO Capital Partners, the credit affiliate of the Blackstone Group, for $7.95m or $1350 per front foot. The lots consist of twenty nine lots at 90’ x 150’ and twenty seven lots at 125’ x 160’ in a 143-lot, 81.3 acre subdivision zoned SF-10.

This sale is part of a larger land banking agreement between Hovnanian and GSO, whereby GSO provides up to $125m in funding to acquire a portfolio of finished lots and option the acquired properties back to Hovnanian on a quarterly basis. To date, the partnership has acquired six land parcels totaling 620 lots.

GSO also increased their holdings in Hovnanian by exchanging $13.4m outstanding debt in three notes of $3m 7.5% Senior Unsecured Note due 2016, $9.1m 8.625% Senior Notes due 2017 and $1.3m in Senior Subordinated note for 3,398,291 shares of Hovnanian’s Class A Common Stock valued at $2 per share.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, ‘like’ us on Facebook, sign in or  join our 30-day free trial and beta test!

By:

Paul Dionne

Research Analyst

pdionne@vizzda.com